1. Why is PPC downward sloping from left to right?2. What does increasing MOC along a PPC mean?3. Which factors lead to a shift of the PPC?4. What does a rightward shift of PPcurve indicate?5. What is economics all about?6. “Massive unemployment shifts the PPC to the left. Defend or refute.7. A lot of people die and many factories are destroyed because of severe

earthquake in the country. How will it affect country’s PPC8. Give two examples of under-utilisation of resources.9. Give two examples of growth of Resources.10. Why does technological advance or growth of resources shift the PPC to the

right.11. How is a market economy different from a centrally planned economy.12. How are central problems solved in market and centrally planned economy.13. From the following PP schedules, calculate MRT of good X.

Production Possibilities A B C D EProduction of good X (units) 0 1 2 3 4Production of good y (units) 14 13 11 8 3

Qes4. Why is PP curve concave to the origin.Qes5. Does production take place on a PP curve? Explain.Qes6. Can a PP curve be a straight line?Qes7. Why do Central problems arise? Explain.Qes8. Calculate marginal opportuinty cost of cloth in terms of sugar at different productionpossibilities from the data.Production Possibilities A B C D E FCloth (million mt) o 1 2 3 4 5Sugar (million kg) 50 45 40 35 25 20